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Wednesday, December 22, 2010

Ghana to avoid oil curse - says World Bank

Country Director of the World Bank for Ghana, Ishac Diwan

The World Bank says it believes Ghana can avoid the "Dutch disease" on account of established and well-managed mining and cocoa sectors as commercial oil production began on December 15, 2010.

According to the Country Director of the World Bank for Ghana, Ishac Diwan, "It's a bit of oil, not a whole lot, so it's not enough to give you the Dutch disease and a curse."

Cocoa and gold accounts for about 75 per cent of foreign exchange earnings for the country.

The current qood prices of both commodities on the international market have been a reprieve for the economic managers.

Ghana is yet to join the world oil cartel, the Organisation of Oil Producing Countries (OPEC), following the first flow of oil from the Jubilee field on December 15, 2010.

Ghana is expected to produce 120,000 barrels of oil per day after full swing oil operations of the Jubilee oil in the first quarter of 2011.

Presently, at the initial drilling, Ghana is expecting on average of 55,000 barrels of oil per day until about April 2011.

Analysts say unlike many other oil-producing African nations whose oil sectors dominate the economy, making them central to conflict and corruption, Ghana's oil will be dwarfed by the established cocoa and mining industries and be managed by one of the region's most stable governments.

"Oil is not so big that it could just shift this country into a different political path. It's not a tsunami," Diwan was quoted as saying.

In an interview with Reuters, the World Bank Country Director referred to a Dutch discovery of gas in the 1960s and said that boosted the currency and undermined other exports.

Ghana expects to produce an average 120,000 barrels per day (bpd) from its off-shore Jubilee field with reserves estimated at 1.5 billion barrels.

Production is expected to increase to 250,000 bpd after three years , about an eighth of what nearby Nigeria produces now.

Ghana is keen to avoid the problems oil has brought to Nigeria, where rebels in motorboats have repeatedly attacked pipelines and platforms in the Niger Delta over the years,, saying they against the theft of the counrty's oil wealth.

In November, traditional chiefs of towns from Western Region demanded a 10 per cent share of oil revenues when crude starts flowing just offshore from thier homeland - a demand that was vehemently rejected by Parliament.

Mr Diwan said a militant insurgency was unlikely given Ghana's record for negotiation to reduce tensions.

"If a warrior emerges, I don't think this person would have a following because there are reasonable chiefs that have managed to voice reasonable demands," he said.

"Institutions in Ghana are quite evolved and civil society is very vibrant and aware of the dangers," Diwan said.

"I just cannot see big corruption happening. Hidden bank accounts in Switzerland and lots of money disappearing, this is not Ghana. I'm broadly optimistic."

Parliament ratified the Petroleum Revenue Management Bill on Monday which is aimed at ensuring the sector benefits ordinary Ghanaians over the long term and at providing a strong regulatory framework as firms explore other blocks off Ghana's coast.

In its 2011 budget, Ghana forecast the estimated $586 million of oil proceeds next year would account for only six per cent of all domestic government revenues.

He said government had a good system of checks and balances and that the private sector had reached an important critical mass.

However, the need to shift from subsistence to commercial agriculture in Ghana is acute as the oil industry has the potential to trigger inflation, making local products uncompetitive witn imports.

There is a lot of potential in agriculture with future prices expecting to rise and a lot of land here and the fear that agriculture can be hurt by the exchange rate appreciation due to oil," he said.

The government is investing heavily in cocoa, aiming to produce over a million tons per year by 2012 up from 632,000 tonnes in 2009, a level that would allow it to challenge neighbouring Ivory Coast for the title of the world's top producer.

The Jubilee Partners, Tullow Oil, Ghana National Petroleum Corporation (GNPC), Kosmos, Anadarko, Sabre Oil and EO Group told journalists at a press conference prior to the official launch on December 15, 2010 that they were excited about the prospects of Ghana's oil find.

However, the caution is that expectations need to be managed.

President Mills in his speech at the official launch reiterated the government's commitment to use the resources for the benefit of the people.

However, opposition political parties have criticised the passage of the oil petroleum management bill which gives government the opportunity to collateralise the oil revenue.

They point to the government's own cabinet bill presented to Parliament in which under clause 5, the government had stated emphatically that oil resources would not be used for collateralisation.

Many analysts cite the nearly botched STX deal, a US$10 billion agreement between the government and the Korean Multinational firm, which will see the construction of about 200,000 housing units in the country, as the main reason for the government to amend its own clause 5 of the Petroleum Management Bill to pave way for the project.

Subsequently, the STX agreement was signed immediately Parliament passed the bill.

That, analysts say, is to enable the government to use the oil resources as collateral to ensure that the arrangers of the facility will be able to source the needed funds for the project.

Again, the growing Chinese interest in Ghana, with the Chinese throwing "freebies" to the current government with an estimated US$ 10 billion loan facility, which experts say, it is too tempting for the government which has had its hands burnt in accessing IMF funds.

However, many also point at the increasing interest of the Chinese as a threat to the country's development, citing the Chinese non-regard for environmental and human rights abuses.

The Sudan is one example of such Chinese interest which has been accused of aggravating the conflict in that country.

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Join Africa for Democracy Now!!!

The people of Tunisia, Egypt, Libya, Djibouti, Cameroon, Gabon are demanding democracy, rule of law and jobs from their leaders. Since January protests have rocked North African states of Tunisia, Egypt and now Libya. Similar protests have also taken place in Cameroon and Gabon.

The protesters have embraced jet fighters, helicopter gunships, armoured carrier assaults, water cannons, tear gas and camel charge. Thousands have died and tens of thousands have been injured. We cannot watch quietly while a part of humanity is being brutalised. The people of Libya, Cameroon and Gabon need our support. They need our prayers,and our encouragement. Our silence means victory for the totalitarian regimes. Let's us support them. This is the time and opportunity to make a difference. Raise your voice against injustice, oppression and dictatorship. Let us support them Now!!!. Join and invite your friends to join.

POLITICIANS AND THE ROT IN GHANA'S HEALTHCARE SYSTEM

Ghana:The Bright Star that Failed to Shine

A protest message to African Leaders

A message to the Thieves & Tyrants in Africa

"But history offers a clear verdict:governments that respect the will of their own people are more prosperous, more stable and more successful than governments that do not.No country is going to create wealth if its leaders exploit the economy to enrich themselves, or police can be bought off by drug traffickers. No business wants to invest in a place where the government skims 20 percent off the top, or the head of the port authority is corrupt".PRESIDENT BARACK OBAMA

HAVE YOU HEARD OF AFRICOM?

WELL, LIKE COLONIALISM AND IMPERIALISM, AFRICOM IS THE NEW UNITED STATES MILITARY PROJECT THAT SEEKS TO ESTABLISH MILITARY BASES ACROSS AFRICA WITH THE SOLE PURPOSE OF SECURING AFRICA'S RESOURCES FOR THE BENEFIT OF US CONSUMERS.

The Question is : Have Africans fail to appreciate sufficiently the bitter pill they swallowed under colonialism? Have Africans forgotten so soon the human and societal damage wreaked on them by Europeans through centuries of slavery, genocide, economic exploitation, cultural manipulation and political domination? Lord A. Adusei

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Corruption in Ghana

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African money stolen so far

Africa has lost $140 billion through corruption in the decades since independence, says Nigeria’s president, Olusegun Obasanjo. The huge sum, largely spirited away by leaders and their associates, was one of the main reasons why Africa’s poverty was so severe.

Other names mentioned by the French Weekly were President Henri Bedie of Ivory Coast, 2 billion FF (or $300 million); President Denis N'guesso of Congo, 1.2 billion FF (or $200 million); President Omar Bongo of Gabon, 0.5 billion FF (or $ $80 million); President Paul Biya of Cameroon, 450 million FF (or $70 million); President Haile Mariam of Ethiopia, 200 million FF (or $30 million); and President Hissene Habre of Chad,20 million FF (or $3 million). Bear in mind that this list does not reflect the actual amount of money stolen out of Africa by these dictators. Factually, the mentioned figures had changed significantly since the French Weekly article was published in 1997. There are now new African billionaires and millionaires, including indicted former Liberian President Charles Taylor, President Gabassinga Eyadema of Togo, former Liberian Warlord Alhaji Kromah, former Ghanaian dictator Jerry J. Rawlings, and the late President Samuel Doe of Liberia; a host of African government ministers would make an updated list. While returning funds stolen out of Africa is the right thing to do, efforts must be made by the West and responsible African governments {i.e. the government of Botswana, etc.} to alter international banking laws that will make it difficult for Africa's government officials and corrupt business personalities to transfer huge funds into western banks. The measure was first proposed following the September 11, 2001 attacks but was rebuffed by western financial institutions. Again, we need to revisit this issue: the terrorists could use the thieves in Africa's government Ministries to transfer money into western bank accounts—the money could be used at a later time for terrorists' activities.

(Paul Japheth Sunwabe) Paul Japheth Sunwabe (a native of Liberia) is a graduate student of World Politics at The Catholic University of America. He is also the co-founder and President of Freedom and International Justice, a Washington DC based inclusive political organization seeking democracy, social justice and economic reforms in Africa. For this and subsequent articles, please visit www.freedomjusticef54.org/articles/

A major shift in funding development in Africa is accelerating. Major donors have been urging African governments to eradicate corruption or face cuts in aid. (African Recovery, by Sam Chege)

Despite the country’s abundant natural resources, including copper, gold and diamonds, the people of the Democratic Republic of Congo continue to sink further into poverty. Meanwhile, Mobutu, the late president who died in 1997, amassed a personal fortune of $5 billion, which was deposited in Swiss banks. (CNN world news, September 7, 1997). After more than three years of legal wrangling, the Nigerian government has finally achieved a major breakthrough in it’s efforts to recoup a substantial amount of money looted by the former president, General Sani Abacha. The money was stored in Swiss bank accounts. Abacha, who died of an apparent heart attack in 1998, had been accused of stealing nearly $3 billion from state funds in a series of staggering revelations of how he and his immediate family personalized Nigeria’s treasury. (This DAY, May 30, 2002)

An excellent way to get rich quick is to be the ex-wife of an ex-president. This is what Mrs. Vera Chiluba is claiming from ex president Chiluba in her application to Ndola High Court: She wants US$2.5 billion in a lump sum, and claims she can prove he has the funds available. She also requires maintenance for their nine children, none of whom are in gainful employment. She also needs a share in 6 properties in Ndola and a commercial farm in Chi samba. Also she needs a new executive Mercedes Benz 500 (or 600), a new Land Cruiser, a new Nissan Patrol, drivers as well and a court order for the return of 400 cattle, sheep and goats which are still at State Lodge.This was taken from the Zambia Post and was also reported in The Zambia Society Newsletter compiled by the glamorous Maggie Currie. Are African presidents the only ones so clever in accumulating wealth so quickly? Even ex president Marcos of the Philippines didn’t get hold of such huge amounts in such a short time. (Elias Georgopoullos, Saturday, April 27, 2002 at 12:52:22 PDT)

The French journal, ‘L’Evenement du jeudi published an article stating that the president of Cameroon, Paul Biya, is worth more than $45 billion FCA, money gleaned from the sales of petroleum. Mr. Biya has not refuted these claims.(Post watch Fact File report by Ntemfac Ofeae, undated).

The late president Mobutu of the Democratic Republic of Congo holds the record for financial plunder and national ruin. It is estimated that he stole $4 billion, leaving the country poorer than he found it, with ruined infrastructure and no formal economy to speak of. A close second to Mobutu is the late dictator of Nigeria, Sani Abacha, whose rule left 70 percent of Nigeria’s 120 million people living on less than one dollar per day. In Kenya, the Daniel Arap Moi dictatorship must be given credit for the systematic destruction of what used to be Africa’s economic showcase from the 1960s through the 70s. The authoritative Africa Confidential put Moi’s external bank holdings at $3 billion. In the so-called Goldenberg scandal, the Moi regime bolted with an estimated $1 biliion from its own central bank (12 percent of the national’s GDP), setting off a spiral of inflation, economic stagnation, unemployment, crime, ruined agricultural sector and decaying public services. (Testimony on the social and political costs of the theft of public funds by African Dictators: US House of Representatives Committee on Financial Services by Michael Chege, University of Florida, May 9, 2002)

Recent surveys carried out by the World Bank in a series of developing countries to compare budget allocations to actual spending at the facility level have confirmed that resources are not allocated according to underlying budget decision. In Uganda and Tanzania, large parts of funds were diverted elsewhere or for private gain. (U4 Utstein Anti corruption resource website) Peter Machungwa, Home Affairs Minister, Godden Mandandi, Works and supply Minister were arrested on Tuesday night in connection with the disappearance of $2 billion in government funds.(Business Day, October 24, 2002) Paul Tembo, former deputy minister of Finance, was shot dead in his home hours before testifying in corruption trial of three cabinet ministers. (BBC News, July 9, 2001). Zambian police and politicians have been identified to be the worst corrupt elements in the country. (AllAfrica.com, March 1, 2001)

Other names mentioned by the French Weekly were President Henri Bedie of Ivory Coast, 2 billion FF (or 300 million); President Denis N'guesso of Congo, 1.2 billion FF (or 200 million); President Omar Bongo of Gabon, 0.5 billion FF (or $ $80 million); President Paul Biya of Cameroon, 450 million FF (or $70 million); President Haile Mariam of Ethiopia, 200 million FF (or $30 million); and President Hissene Habre of Chad, 20 million FF (or $3 million). Bear in mind that this list does not reflect the actual amount of money stolen out of Africa by these dictators. Factually, the mentioned figures had changed significantly since the French Weekly article was published in 1997. There are now new African billionaires and millionaires, including indicted former Liberian President Charles Taylor, President Gabassinga Eyadema of Togo, former Liberian Warlord Alhaji Kromah, former Ghanaian dictator Jerry J. Rawlings, and the late President Samuel Doe of Liberia; a host of African government ministers would make an updated list. While returning funds stolen out of Africa is the right thing to do, efforts must be made by the West and responsible African governments {i.e. the government of Botswana, etc.} to alter international banking laws that will make it difficult for Africa's government officials and corrupt business personalities to transfer huge funds into western banks. The measure was first proposed following the September 11, 2001 attacks but was rebuffed by western financial institutions. Again, we need to revisit this issue: the terrorists could use the thieves in Africa's government Ministries to transfer money into western bank accounts—the money could be used at a later time for terrorists' activities

Arap Moi's Loots

The Kroll report revealed an intricate network of companies that were used to transfer billions of shillings to foreign countries like the United Kingdom, Australia, Switzerland, the Cayman Islands and Brunei among other countries using shell companies and dummy trusts registered in safe havens. The report also revealed the individuals and wealthy families who were behind the siphoning of enormous amounts of money out of the country and the banks that were involved. The Kroll report described in detail the assets owned by various politically connected families and individuals in a total of 28 countries across the world including hotels and residences in South Africa and the United States, a 10 000 ha ranch in Australia,3 hotels in London, a 4million pound house in Surrey and a 2million pound penthouse flat in Knightsbridge

Mother Ghana

I love Ghana, my mother land. Ghana is my only home. I must protect its people, its culture, its peace, its economy and its democracy and our children's children so that future generations will live to enjoy every aspect of the country.

Yes there are many tribes, languages, dialects and cultures but we are all Ghanaians. There is no tribe but Ghana. There is no political party but Ghana. Peace and unity is what we need to build the country. Politicians and political parties will come and go but Ghana will remain. So if we build it well today, our children will live to bless us. Together we stand divided we fall.